How the ‘Small-Business Tax Cut’ Would Also Be a Tax Cut for the Wealthy

Dec 23, 2017| Courtesy by : www.nytimes.com

 

Republican lawmakers say that one of the largest tax cuts in their tax bill, a 20 percent deduction for pass-through income, is for small businesses and job creators. But there are also millions of other tax filers — many at the highest income levels — who would benefit significantly.

 

 

Source: U.S. Treasury, Office of Tax Analysis, 2014 I.R.S. data | Note: Numbers may not add up because of rounding.

Pass-through income is business income that is taxed once at the individual rates of the business owner, instead of through the corporate tax structure. Nearly 40 million taxpayers claimed pass-through income on their individual tax returns for 2014.

Some Republicans pushed to include the cuts in the bill so that pass-throughs, which make up more than 95 percent of business tax filings, will get similar tax relief as corporations, which are receiving a large rate cut. Here are some examples of taxpayers who might claim pass-through income: read more at https://www.nytimes.com/interactive/2017/12/20/us/politics/small-business-tax-cut-pass-throughs.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=b-lede-package-region&region=top-news&WT.nav=top-news&_r=0

 

Pakistan Musim league USA officail websit.